Pan African Reports Surge in Profits as CEO Completes Ten Years in Leadership

September 11, 2024 05:06 AM PDT | By Team Kalkine Media

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Pan African Resources PLC (OTC:PAFRF) has marked a decade under the leadership of Cobus Loots, who has expressed confidence in the company's strong performance and future prospects. The South African gold mining firm has demonstrated notable financial achievements and operational efficiency during this period.

For the fiscal year ending June 2024, Pan African Resources reported a 17% increase in revenues, reaching $374 million. This rise in revenue is complemented by a 30% growth in profits, which totaled $78.8 million. Gold production for the same period saw a 6% improvement, reaching 186,000 ounces, with the average gold price received increasing by 11%.

Looking ahead to the year ending June 2025, production is anticipated to rise to between 215,000 and 225,000 ounces, bolstered by the new MTR tailings project. This expected growth aligns with the company's strategy to enhance production capabilities and manage operational costs effectively. The cost per ounce is projected to be between $1,350 and $1,400 on a sustaining basis.

The company's commitment to maintaining a robust gold resource base is evident, with over 30 million ounces of SAMREC-compliant gold resources secured in the Barberton and Evander regions, extending through 2051 and 2038, respectively. Pan African Resources is poised to strengthen its position as a mid-tier producer with a projected 25% increase in production and a reduction in unit costs.

Cobus Loots noted that while gold equities may currently be underperforming relative to the gold price due to concerns over capital allocation and sustainable value creation, the long-term trend of high gold prices is expected to persist. The dividend declared for the year stands at R22c (US1.2c), with a year-end debt of $106 million, reflecting the investment in the MTR project.

Overall, Pan African Resources PLC continues to showcase a strong financial performance and strategic growth initiatives, positioning itself effectively in the gold mining sector.

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